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JAMB Principles of Accounts 2004 Question 18

Question 18

Control Accounts

Use the information below to answer questions 17 and 18.
Opening balance ₦10,640
Purchases ₦26,912
Returns inwards ₦492
Returns outwards ₦810
Cash discount received ₦1,348
Cash discount allowed ₦1,560
Cash paid to suppliers ₦20,808
At the year end, the purchases ledger showed a debit balance of ₦108.
The balancing figure in the purchases ledger control account is

  1. A.₦15,828
  2. B.₦15,720
  3. C.₦14,940
  4. D.₦14,694
Show the answer and explanation

Answer: D (₦14,694)

Explanation

Credit side: 10,640 + 26,912 + debit balance c/d 108 = ₦37,660. Debit side before balancing: ₦22,966. Closing credit balance = 37,660 − 22,966 = ₦14,694.